Embed Size (px)
Citation preview
AGENDA Utility Commission Meeting
Waupun Utilities – 817 S Madison St. Waupun, WI P.O. Box 431
Monday, June 10, 2019 AT 4:00 PM
There is a regular commission meeting scheduled for Monday, June 10, 2019, at 4:00 PM at the
Waupun Utilities Administrative Building located on 817 S. Madison Street, Waupun, Wisconsin.
CALL TO ORDER ROLL CALL OF COMMISSIONERS APPROVAL OF PREVIOUS MEETING MINUTES
1. May 13, 2019 Utility Commission Minutes APPROVAL OF PAYMENT - PREVIOUS MONTHS BILLS
2. 05-2019 Accounts Payable GM REPORT / OPERATIONS REPORT
3. General Manager Report 4. Water and Wastewater Report 5. Electric Operations Report
FINANCIAL REPORT / APPROVAL OF MONTHLY FINANCIAL RESULTS
6. Finance Director Report 7. May 2019 Financial Report
APPEARANCE BY VISITORS
AGENDA 8. Review/Approve 2018 Compliance Maintenance Annual Report (CMAR) 9. Resolution Declaring Official Intent to Reimburse Expenditures from Proceeds of Borrowing
ADJOURNMENT
Upon reasonable notice, efforts will be made to accommodate disabled individuals through appropriate aids and services. For additional information, contact the General Manager at 920-324-7920.
1
Minutes of a Regular Meeting of the Waupun Utilities Commission
Monday, May 13, 2019
The meeting was called to order by General Manager Posthuma at 4:00 p.m. Meeting held at 501 Fond du Lac Street, Waupun’s Waste Water Treatment Facility. Commissioners Gerritson, Heeringa, Homan, Kaczmarski, Mielke, Thurmer, and Westphal were present. Motion made by Thurmer, seconded by Homan and unanimously carried, to approve the minutes from the April 8, 2019, regular meeting. On motion by Kaczmarski, seconded by Gerritson and unanimously carried, bills for the month of April 2019 were approved as presented. Reports by General Manager, Water and Wastewater Operations Supervisor, and Electric Supervisor were provided in written form, no discussion held. On motion by Kaczmarski, seconded by Westphal, the year-to-date financial reports through April 2019 were approved as presented. Electric operating income was $60,700 or $154,400 below budget on lower margins and higher distribution expense. Water operating income was $255,100 or $51,100 above budget on higher revenues and lower distribution maintenance expenses. Sewer operating income was $143,300 or $69,800 above budget on higher revenues and lower maintenance expenses. Election of officers was held. On nomination by Thurmer, seconded by Homan, and unanimously carried, Joe Heeringa was elected Commission President. On nomination by Thurmer, seconded by Mielke and unanimously carried, Gerritson was elected Vice-President. On motion by Thurmer, seconded by Gerritson and unanimously carried, General Manager Posthuma was elected Secretary, with the option to designate minute taker. Dan La Haye, Baker Tilly, presented a report on the 2018 financial audit. The audit objective was to provide reasonable assurance that Waupun Utilities’ financial statements are free from material misstatement. We received an unmodified opinion, which is the highest level of assurance that can be placed on financial statements. La Haye noted the overall financial health of the Utilities is good. Motion made by Thurmer to approve the 2018 Financial Audit Report. Motion seconded by Gerritson and unanimously approved. Discussion held on Waupun Utilities donation and event participation guidelines. Motion made by Kaczmarski to approve the Waupun Utilities Donations and Event Participation Policy. Motion seconded by Thurmer and carried unanimously. Discussion held on guidelines for compensation during extended emergency events. Motion made by Thurmer, to approve the Waupun Utilities Nonexempt Employee Compensation for Extended Emergencies. Motion seconded by Homan and carried unanimously. An update on the ABNR (Advanced Biological Nutrient Recovery) continuous pilot testing was provided by Leo Kucek, Applied Technologies, and Jordan Lind, CLEARAS. The continuous pilot testing is performing as expected producing effluent results on average below the total maximum daily load phosphorus limit of 0.05 mg/L. A tour of the continuous pilot ABNR system was provided by Autumn Fisher, CLEARAS, providing an overview of the process and equipment and answering questions. The continuous pilot testing is planned to occur through the month of June to provide sufficient data and information for the full plant engineering design.
2
Waupun Utilities Commission May 13, 2019, Meeting Minutes Page 2
On motion by Westphal, seconded by Homan and unanimously carried, the meeting was adjourned at 5:50p.m. Next commission meeting is scheduled on June 10, 2019, at 4:00 p.m. Jared Oosterhouse Finance Director
3
4
5
6
7
8
9
10
11
12
13
TO: Waupun Utilities Commissioners FROM: Randy Posthuma, General Manager DATE: June 6, 2019 SUBJECT: General Manager Report
Municipal Day at the Capitol on May 22: Jared and I attended this year’s “Municipal Government and Utility Day” at the Wisconsin State Capitol on Wednesday, May 22. Similar to events held in 2017 and 2015, MEUW again partnering with the League of Wisconsin Municipalities, Wisconsin Rural Water Association (WRWA), the Transportation Development Association of Wisconsin, and Municipal Environmental Group (MEG) Water and Wastewater Divisions for a lobbying day to educate state legislators and staff and help to advocate for municipal needs. The day started 9 a.m. at Madison’s Monona Terrace Community and Convention Center, and included group breakout topical briefings followed by advocacy meetings at the Capitol. Jared and I took the opportunity to meet with Senator Dan Feyen and Representative Michael Schraa’s senior staff. Discussion focused on:
Concern over PSC authority over water utility decision making. Wisconsin is the only state that the PSC holds authority over water utilities. We are concerned that the PSC is interpreting this authority more broadly than it has in the past, and as a result, the PSC has been slower in issuing water utility decisions in rate cases and construction authorization. When finally issuing decisions, the PSC rulings contain more conditions, and its proposed rules have become more prescribed.
The potential loss of local and state control for municipal utilities to negotiate pole attachment agreements and right-of-way usage for 5G technology. Municipal utilities welcome new technologies like 5G to our communities. But, we are opposed to the FCC setting pole attachment rates and regulations.
Both Senator Feyen and Representative Schraa’s senior staff were very interested in our concern about the potential loss of our State Correctional facilities in Waupun. We discussed our future wastewater facility upgrade currently being designed and pilot tested. We reiterated the potential financial burden that a closer of these facilities would present to our customers. We were assured that even though some of our current corrections facilities are old, there are no talks or desire to close the current facilities in Waupun.
Waupun Utilities Receives First Place Safety Award From American Public Power Association: American Public Power Association (APPA) was created in 1940 as a nonprofit, non-partisan organization to advance the public policy interests of its members and their consumers, and provide member services to ensure adequate, reliable electricity at a reasonable price with the proper protection of the environment.
14
Page 2 of 2
APPA is a nationwide organization that provides many different services to its public utility members. One of the services it provides is nationally recognized safety rules for the electric industry. MEUW, along with Waupun Utilities, has adopted these rules and provides instruction of these rules and regulations to our electrical staff. Every year APPA encourages its members to submit information to them regarding electric crew hours worked vs any recordable injuries or illnesses that may have occurred throughout the year. There is a twofold reason for APPA wanting to gather this information;
1) To recognize utilities that have achieved no or low recordable accidents. 2) To track injury or illness trends in the electric industry so they can better train our
workers to prevent future injuries. Bill Cycle Change: Beginning in June 2019, Waupun Utilities will be changing billing dates for its customers. This billing date change is needed to allow us to better match electric sales with our electric purchases, which in turn will help minimize the changes in monthly power cost adjustment clause (PCAC) charges. What is the PCAC? The Power Cost Adjustment Clause (PCAC) allows electric utilities to make monthly adjustments to customer bills when costs for providing power are above or below the average cost authorized by the Public Service Commission (PSC). In essence, when power costs fluctuate, the PCAC allows bills to be adjusted accordingly. Previous Billing Procedure We received our electric purchase bill at the beginning of the month reflecting sales from the previous month’s purchases. Customer meters were not read until on or about the middle of each month, bills were mailed out a couple of days after the meter reading and were due by the 10th of the next month. This time lag created more fluctuations in customers’ bills because the PCAC was not fully being applied to the time it was incurred. New Billing Procedure In order to better align electric sales with our electric purchases we will be adjusting our billing period. Customer meters will be read at the end of each month, with bills mailed within 5 business days and due within 20 days, generally by the 25th of the same month. Going forward, all future bills will be based on a calendar month basis. Benefits of the change – Customers’ PCAC charge will have less volatility and monthly energy costs will be more accurately reflected on their bill. Silgan Containers Cooperation Update: Silgan Containers announced that they will be closing their Waupun facility. Their final day of operation will be November 4, 2019. Silgan staff were told that they are starting two new production lines in other locations. More information along with anticipated revenue impact will be provided at our meeting on Monday. This concludes my report for June 2019. Please contact me at 324-7920 or [email protected], with any questions or concerns.
15
TO: Waupun Utilities Commissioners FROM: Steve Schramm DATE: June 5, 2019 SUBJECT: Monthly Operation Report
Water Treatment Facility:
There was call-in for a Filter 1 valve failure. This caused an uncontrolled shut down to the treatment facility. An operator trouble shot the valve, made repairs, and the system was restored to normal operation.
Wastewater Treatment Facility:
There are no call-ins to report this month. The main focus of staff has been tank maintenance. This maintenance will continue throughout the remainder of the summer and into the early fall. The length of the schedule is due to a combination of vacations, and the total number of tanks to be inspected. Currently the aerated grit tanks and two primary clarifiers have been completed. The Rock River Intermediate School brought several fifth and sixth grade classes for tours. Students have been learning about the water cycle and water and wastewater resource management. Water/Sewer Crew:
Staff’s focus will be preventative maintenance of the distribution and collection system over the next month. These tedious tasks are identified below.
Staff continues jetting the entire sanitary sewer basin.
Staff will begin to work on the fire hydrant preventative maintenance program. This efficient and cost effective asset management program keeps hydrants working and helps avoid a large capital expenditure, when things break down and need immediate replacement.
Madison Street Update:
This week the contractor worked on installing sanitary main and sanitary services. All water main and water services are installed from the north project line to Main St. Next week, main focus with be storm sewer in the Main St. intersection.
16
CLEARAS Update:
Continuous treatment has continued with good success. ABNR feed concentration averages 1.4 mg/l TP and permeate concentration averages of .034 mg/l TP, which is below the future phosphorus limit of .075mg/l. The ABNR has been consistently removing 97 percent of the total phosphorus.
This concludes my report. Please do not hesitate to contact me with your questions or concerns at 324-7920 or [email protected]
17
TO: Waupun Utilities Commissioners FROM: Steve Brooks Electric Operations Supervisor DATE: June 6, 2019 SUBJECT: Electric Operations Report
Electric Department Update: One call in to report for May. On Friday the 17th, at 5:00 p.m., a car struck a traffic light at the intersection of W. Main St. and Beaver Dam St. The electric department was called in to de-energize the pole and remove it from the intersection. The electric crew has completed E. Franklin Street rebuild. Charter Communications is scheduled to transfer cable to the new poles the 2nd week in June. After transfers are complete the old poles will be removed Voltage conversion work continues on the west side of town. Several pad mount transformers have been replaced on Feeder #1. Upcoming work
Install new electric services to several new homes being constructed in town Voltage conversion work on Feeder 1 West sub (North West side of town) Install 3 new poles in back alley 1100 block of W. Main St. (Pole line North of Farm and
Home) Install new Street lighting infrastructure on Madison Street New URD electric service for the traffic light controller on N. Madison Street ATC outage for transmission pole replacement
This concludes my report for June 2019. Please contact me at 324-7920 or [email protected], with any questions or concerns.
18
Page 1 of 2
TO: Waupun Utilities Commissioners FROM: Jared Oosterhouse, Finance Director DATE: June 6, 2019 SUBJECT: May 2019 Financial Report
CONSTRUCTION AND PLANT ADDITIONS The electric utility construction activity consisted primarily of rebuilding overhead line near Madison Street totaling $12,600. The electric utility also purchased $35,000 in transformers. The sewer and water utility incurred $410,000 in project costs for Madison Street reconstruction. For plant additions, the sewer utility replaced the Shaler Lift Station control panel at a cost of $12,800. The water and sewer utility replaced a locating device that stopped working at a cost of $4,300. MONTHLY METRICS – May 2019 YTD
Sales Electric kWh sales were 1.73% above budget and 1.07% above 2018 on higher residential, general
service, and large industrial power sales Water Sales units of 100 cubic feet were 0.80% below budget, and 1.70% below 2018 on lower sales in most classes
Sewer Sales units of 100 cubic feet were 3.24% above budget and 2.91% above 2018 on higher public
authority treatment volume
Income Statement Electric Operating revenues and purchased power expense were below budget $325,400 and $193,600
respectively, due to overall lower purchased power costs Gross margin was $131,800 below budget. I expect this to improve during the summer months. Operating expenses were $35,900 above budget on higher distribution expenses from the first 5
months of routine maintenance activity Operating income was $80,900 or $167,200 below budget on lower gross margins and higher
expenses. Operating income is expected to improve during construction season as costs are capitalized.
Water Operating revenues were $9,700 above budget Operating expenses were $45,500 below budget on lower water treatment, transmission and
distribution expenses, and administrative and general expenses Operating income was $322,400 or $60,400 above budget Net income was $255,900 or $60,400 above budget
19
Page 2 of 2
Sewer Operating revenues were $22,100 above budget on strong public authority treatment charges Operating expenses were $53,100 below budget on lower operation and maintenance expenses Operating income was $173,800 or $75,100 above budget Net income was $231,200 or $137,700 above budget on lower expenses and higher operating
revenues and investment income Balance Sheets
Electric Balance sheet increased $34,800 from April 2019 Total unrestricted and restricted cash increased $27,900
Water Balance sheet increased $67,300 from April 2019 Total unrestricted cash increased $204,400 from operating results and a reimbursement transfer
from the restricted construction account for the previous month’s project payments for Madison St Restricted cash decreased $329,500 from payments and transfers made for Madison Street
reconstruction Plant increased $204,900 on payments made for Madison Street reconstruction
Sewer Balance sheet decreased $334,900 from April 2019 Unrestricted cash decreased $102,700 from payments made for Madison Street reconstruction Restricted cash decreased $341,403 on principal and interest payments made on the 2003
Revenue Bonds Interest accrued decreased $24,900 and long-term debt decreased $354,600 from payments
made Net position increased $42,900 from operating results
Cash and Investments The monthly metrics dashboard for cash and investments provide a monthly comparison of cash and investment balances, and graphs that present long-term investments by maturity, type, and rating.
Total cash and investments decreased $541,300 from April 2019 from debt service and Madison Street construction payments
Received interest and distributions of $5,300 and recorded an unrealized positive market adjustment of $12,500, along with $600 in management fees, resulting in a net portfolio gain of $17,200 for the month.
Total interest and investment income earned on all accounts for the month was $26,000 and $117,300 year-to-date
This concludes my report. Please do not hesitate to contact me at 324-7923 or [email protected] with any questions or comments.
20
Waupun UtilitiesConstruction and Plant Additions Summary
May 2019
CONSTRUCTION:Total
Description MonthProjectTo Date Budget Month
ProjectTo Date Budget Month
ProjectTo Date Budget
ProjectTo Date Budget
Projects:Poles, towers and fixtures ‐$ ‐$ 10,000$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ 10,000$ Overhead and underground conductor and devices 2,942 5,038 10,000 ‐ ‐ ‐ ‐ ‐ ‐ 5,038 10,000 Transformers 34,948 100,474 100,000 ‐ ‐ ‐ ‐ ‐ ‐ 100,474 100,000 Overhead and Underground Services 2,037 9,179 15,000 ‐ ‐ ‐ ‐ ‐ ‐ 9,179 15,000 Street lighting / Damaged Street Light Poles 228 19,336 50,000 ‐ ‐ ‐ ‐ ‐ ‐ 19,336 50,000 Voltage conversion 244 855 60,000 ‐ ‐ ‐ ‐ ‐ ‐ 855 60,000 Rebuild overhead line 12,642 20,357 175,000 ‐ ‐ ‐ ‐ ‐ ‐ 20,357 175,000 Customer Contributed Extensions and Services ‐ 941 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 941 ‐ Newton/Rock Avenue Engineering ‐ ‐ ‐ ‐ 15,809 25,000 ‐ 15,809 25,000 31,618 50,000 Meters ‐ ‐ 6,000 ‐ ‐ ‐ ‐ 26,750 26,700 26,750 32,700 WWTP Phosphorus Upgrade Engineering ‐ ‐ ‐ ‐ ‐ 900,000 ‐ ‐ ‐ ‐ 900,000 Madison St Engineering & Construction ‐ ‐ ‐ 158,824 199,332 1,148,100 251,167 439,275 1,442,500 638,607 2,590,600 Services / Laterals ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Hydrants ‐ ‐ ‐ ‐ ‐ ‐ ‐ 167 25,000 167 25,000
TOTAL CONSTRUCTION 53,041$ 156,180$ 426,000$ 158,824$ 215,141$ 2,073,100$ 251,167$ 482,001$ 1,519,200$ 853,321$ 4,018,300$
PLANT ADDITIONS:Total
Description Month YTD Budget Month YTD Budget Month YTD Budget YTD BudgetServer Replacement -$ ‐$ 3,600$ ‐$ ‐$ 3,600$ ‐$ ‐$ 3,600$ ‐$ 10,800$ Pickup trucks and SUV - 34,157 40,000 ‐ 20,638 24,000 ‐ 20,638 24,000 75,433 88,000 Portable meter test bench - 10,165 11,000 ‐ ‐ ‐ ‐ ‐ ‐ 10,165 11,000 Portable generator - ‐ ‐ ‐ 21,699 23,000 ‐ ‐ ‐ 21,699 23,000 Push camera with locator - ‐ ‐ ‐ 12,370 13,500 ‐ ‐ ‐ 12,370 13,500 Hydrant listener replacement - ‐ ‐ ‐ ‐ ‐ ‐ 4,000 4,000 4,000 4,000 Well PLC hardware upgrade - ‐ ‐ ‐ ‐ ‐ ‐ ‐ 24,400 ‐ 24,400 Water treatment plant ‐ equipment replacement - ‐ ‐ ‐ ‐ ‐ ‐ ‐ 5,000 ‐ 5,000 Shaler lift station ‐ control panel - ‐ ‐ 12,770 12,770 14,000 ‐ ‐ ‐ 12,770 14,000 Digester building equipment replacement - ‐ ‐ ‐ 6,964 6,900 ‐ ‐ ‐ 6,964 6,900 Blower building equipment replacement - ‐ ‐ ‐ 181,456 219,600 ‐ ‐ ‐ 181,456 219,600 Filter building equipment replacement - ‐ ‐ ‐ ‐ 80,000 ‐ ‐ ‐ ‐ 80,000 Other equipment replacement - ‐ ‐ 2,173 9,487 5,300 2,173 ‐ ‐ 9,487 5,300 TOTAL PLANT ADDITIONS ‐$ 44,322$ 54,600$ 14,943$ 265,384$ 389,900$ 2,173$ 24,638$ 61,000$ 334,344$ 505,500$
Electric Sewer Water
Sewer WaterElectric
Page 1 of 10
21
Monthly Dashboard ‐ Sales Graphs May 2019
‐
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
Residential Commerical Small Power Large Power Industrial Power Large Industrial
YTD Electric Sales (kWh)
Budget 2019 2018 2017
‐
20,000
40,000
60,000
80,000
100,000
120,000
140,000
Residential Commercial Industrial Public Authority
YTD Sewer Sales (Ccf)
Budget 2019 2018 2017
‐
10,000
20,000
30,000
40,000
50,000
60,000
Residential Multifamily Commercial Industrial Public Authority
YTD Water Sales (Ccf)
Budget 2019 2018 2017
Page 2 of 10
22
ELECTRIC May 2017 May 2018 May 2019
Sales of Electricity 10,173,755$ 10,183,348$ 9,939,822$ Purchased Power 8,178,273 8,177,714 7,854,836
Gross Margin 1,995,482 2,005,634 2,084,986 19.6% 19.7% 21.0%
Other Operating Revenues 94,502 137,360 99,827
Operating ExpensesDistribution expense 399,307 259,075 421,175 Customer accounts expense 113,373 109,680 118,584 Advertising expense 1,980 34 2,260 Administrative & general expense 414,468 399,492 382,043
Total operating expenses 929,128 768,282 924,062
Other Operating ExpensesDepreciation expense 551,769 568,615 581,852 Taxes 319,755 345,372 343,287
Total other operating expenses 871,524 913,987 925,139
Operating Income 289,331 460,725 335,613
Other Income (Expense)Interest expense (42,045) (37,735) (33,810) Capital contributions 63,043 160,755 106,216 Other (20,461) 32,046 (72,151)
Total other income (expense) 537 155,065 255
Net Income 289,868$ 615,791$ 335,867$
Regulatory Operating Income 361,093 547,991 397,614 Rate of Return 4.30 6.52 4.64 Authorized Rate of Return 6.00 5.00 5.00
Current Ratio 2.4 2.9 3.7 Months of Unrestricted Cash on Hand 2.0 2.3 2.5 Debt vs Equity 0.82 0.84 0.86 Asset Utilization 0.48 0.48 0.50
Combined E&W Debt Coverage 2.74 2.95 2.68 Minimum Required Coverage 1.25 1.25 1.25
Note 1 - Electric rates were increased September 2016.
DefinitionsRate of Return - Return on investment in capital infrastructure. Should be near authorized rate of return.Current Ratio - measure of liquidity or ability to pay obligations. Should be > 1.Months of Unrestricted Cash on Hand - measure of reserves. Should be at least 2-3 months.Debt vs. Equity - Percent of infrastucture financed by operations. 50% is a good benchmark.Asset Utilization - Illustrates the relative age of the system. Ratio of 1 indicates a system at full life expectancy.Debt Coverage - Earnings coverage of annual debt service. Must exceed 1.25
WAUPUN UTILITIESIncome Statement and Financial Ratios
Electric UtilityFor the 12 Months Ending:
Page 3 of 10
23
Last 12 Months YTD 2019 YTD Budget DifferenceELECTRIC
Operating Revenues 9,939,822$ 3,689,462$ 4,014,902$ (325,440)$ Purchased Power 7,854,836 2,832,687 3,026,335 (193,648) Gross Margin 2,084,986 856,775 988,567 (131,792)
21.0% 23.2% 24.6%
Other Operating Revenues 99,827 40,629 39,988 641
Operating ExpensesDistribution expense 421,175 193,415 153,169 40,246 Customer accounts expense 118,584 50,178 51,020 (843) Advertising expense 2,260 3,110 833 2,277 Administrative & general expense 382,043 179,654 185,436 (5,782)
Total operating expenses 924,062 426,357 390,459 35,898 Other Operating Expenses
Depreciation expense 581,852 245,591 245,591 - Taxes 343,287 144,572 144,375 197
Total other operating expenses 925,139 390,163 389,966 197
Operating Income 335,613 80,885 248,131 (167,246)
Other Income (Expense)Interest expense (33,810) (13,121) (13,121) (0) Capital contributions 106,216 - - - Other (72,151) 18,410 3,260 15,150
255 5,288 (9,861) 15,149
Net Income 335,867$ 86,173$ 238,270$ (152,096)$
May 2019 April 2019 March 2019 Feb 2019 Jan 2019 Dec 2018 Nov 2018 Oct 2018 Sept 2018 Aug 2018 July 2018 June 2018 May 2018
Operating Revenues 712,923$ 726,750$ 735,403$ 753,842$ 760,543$ 756,494$ 756,512$ 804,298$ 925,687$ 1,067,486$ 1,056,345$ 883,539$ 762,991$ Purchased Power 556,360 560,654 571,584 575,344 568,745 582,164 593,232 604,710 731,023 882,407 893,266 735,346 619,185 Gross Margin 156,562 166,096 163,820 178,499 191,798 174,330 163,280 199,587 194,664 185,078 163,078 148,193 143,807
22.0% 22.9% 22.3% 23.7% 25.2% 23.0% 21.6% 24.8% 21.0% 17.3% 15.4% 16.8% 18.8%
Other Operating Revenues 8,356 7,600 9,213 7,817 7,643 10,285 9,353 8,387 7,734 8,053 7,648 7,738 7,762
Operating ExpensesDistribution expense 29,768 42,964 38,981 38,822 42,881 28,946 23,835 24,074 78,051 27,889 24,201 20,766 23,795 Customer accounts expense 10,142 9,568 10,067 9,234 11,167 6,532 8,963 9,492 8,898 13,232 12,915 8,375 9,594 Advertising expense 549 1,661 250 200 450 (304) 434 120 (3,350) 500 - 1,750 250 Administrative & general expense 28,260 34,802 39,953 32,734 43,907 42,930 27,937 28,872 22,801 28,403 23,492 27,954 25,940
Total operating expenses 68,719 88,994 89,250 80,989 98,405 78,103 61,169 62,558 106,399 70,023 60,608 58,845 59,579
Other Operating ExpensesDepreciation expense 49,118 49,118 49,118 49,118 49,118 49,604 47,776 47,776 47,776 47,776 47,776 47,776 47,776 Taxes 26,862 33,403 27,206 27,569 29,531 27,304 26,672 38,604 26,088 27,222 26,479 26,346 26,264
Total other operating expenses 75,980 82,521 76,324 76,687 78,649 76,907 74,448 86,381 73,864 74,998 74,255 74,122 74,041
Operating Income 20,219 2,180 7,458 28,640 22,388 29,604 37,016 59,036 22,134 48,110 35,864 22,964 17,949
Other Income (Expense)Interest expense (2,624) (2,624) (2,624) (2,624) (2,624) (2,956) (2,956) (2,956) (2,956) (2,956) (2,956) (2,956) (2,956) Capital contributions - - - - - 44,072 49,776 (3,827) - 4,743 5,762 5,690 - Other 4,406 1,770 5,942 3,354 2,937 4,239 (98,899) 904 464 4,502 (396) (1,375) 1,582
1,782 (854) 3,318 730 313 45,355 (52,078) (5,878) (2,492) 6,290 2,410 1,359 (1,373)
Net Income 22,001$ 1,327$ 10,776$ 29,370$ 22,701$ 74,959$ (15,062)$ 53,158$ 19,642$ 54,400$ 38,274$ 24,323$ 16,576$
WAUPUN UTILITIESDetailed Income Statement and YTD Budget Comparison
Electric UtilityFor the Period Ended May, 31 2019
Page 4 of 10
24
WATER May 2017 May 2018 May 2019
Operating Revenues 2,564,079$ 2,563,139$ 2,581,239$ Operating Expenses
Source of supply expenses 56,875 52,708 457 Pumping expenses 84,988 89,809 94,145 Water treatment expenses 288,507 180,220 188,984 Transmission & distribution expenses 211,097 315,696 308,700 Customer accounts expenses 97,399 106,055 112,404 Administrative & general expense 290,061 267,270 229,946
Total operating expenses 1,028,927 1,011,758 934,637
Other Operating ExpensesDepreciation expense 545,332 554,990 539,014 Taxes 362,095 369,628 384,442
Total other operating expenses 907,426 924,618 923,456
Operating Income 627,725 626,762 723,146
Other Income (Expense)Interest expense (160,442) (142,324) (127,513) Capital contributions from customers and municipal 64,209 383,082 67,178 Other (48,255) (56,165) (38,150)
Total other income (expense) (144,487) 184,593 (98,485)
Net Income 483,238$ 811,355$ 624,661$
Regulatory Operating Income 685,511 684,652 769,007 Rate of Return 5.25 5.09 5.53 Authorized Rate of Return 6.50 6.50 6.50
Current Ratio 14.21 25.69 32.08
Months of Unrestricted Cash on Hand 5.24 8.35 10.36
Debt vs Equity 0.61 0.65 0.65
Asset Utilization 0.33 0.33 0.34
Note 1 - Water rates were increased May 2012.
DefinitionsRate of Return - Return on investment in capital infrastructure. Should be near authorized rate of return.Current Ratio - measure of liquidity or ability to pay obligations. Should be > 1.Months of Unrestricted Cash on Hand - measure of reserves. Should be at least 2-3 months.Debt vs. Equity - Percent of infrastucture financed by operations. 50% is a good benchmark.Asset Utilization - Illustrates the relative age of the system. Ratio of 1 indicates a system at full life expectancy.
WAUPUN UTILITIESIncome Statement and Financial Ratios
Water UtilityFor the 12 Months Ending:
Page 5 of 10
25
Last 12 Months YTD 2019 YTD Budget DifferenceWATER
Operating Revenues 2,581,239$ 1,058,336$ 1,048,588$ 9,748$ Operating Expenses
Source of supply expenses 457 127 1,250 (1,123) Pumping expenses 94,145 38,389 38,873 (484) Water treatment expenses 188,984 75,233 88,626 (13,393) Transmission & distribution expenses 308,700 90,358 110,554 (20,197) Customer accounts expenses 112,404 48,688 49,390 (702) Administrative & general expense 229,946 97,363 107,010 (9,647)
Total operating expenses 934,637 350,157 395,703 (45,546) Other Operating Expenses
Depreciation expense 539,014 226,323 226,323 - Taxes 384,442 159,479 164,625 (5,146)
Total other operating expenses 923,456 385,802 390,948 (5,146)
Operating Income 723,146 322,377 261,937 60,440
Other Income (Expense)Interest expense (127,513) (49,485) (49,485) 0 Capital contributions 67,178 - - - Other (38,150) (16,976) (16,941) (35)
(98,485) (66,461) (66,427) (35)
Net Income 624,661$ 255,916$ 195,510$ 60,405$
May 2019 April 2019 March 2019 Feb 2019 Jan 2019 Dec 2018 Nov 2018 Oct 2018 Sept 2018 Aug 2018 July 2018 June 2018 May 2018WATER
Operating Revenues 216,260$ 212,132$ 207,623$ 211,393$ 210,927$ 207,734$ 209,828$ 219,788$ 216,233$ 223,017$ 222,299$ 224,005$ 214,161$ Operating Expenses
Source of supply expenses - 127 - - - 98 102 31 91 - - 9 - Pumping expenses 7,052 8,022 7,865 7,675 7,775 8,818 7,146 7,305 7,172 8,693 8,602 8,020 7,817 Water treatment expenses 10,553 15,749 11,824 16,442 20,665 12,950 11,857 14,912 20,731 21,031 14,563 17,706 16,033 Transmission & distribution expenses 28,626 25,611 12,992 14,020 9,108 62,216 27,955 17,349 17,983 46,402 11,943 34,494 20,895 Customer accounts expenses 9,593 9,313 9,843 8,729 11,209 5,722 8,488 8,944 8,356 12,517 11,532 8,157 9,053 Administrative & general expense 16,010 18,404 22,180 18,226 22,543 27,073 19,677 16,075 15,345 21,746 15,134 17,533 18,108
Total operating expenses 71,835 77,226 64,704 65,092 71,300 116,876 75,225 64,617 69,679 110,390 61,774 85,920 71,905
Other Operating ExpensesDepreciation expense 45,265 45,265 45,265 45,265 45,265 39,736 45,493 45,493 45,493 45,493 45,493 45,493 45,493 Taxes 31,893 32,214 31,665 31,590 32,117 30,698 31,960 34,191 31,664 32,809 31,713 31,927 31,879
Total operating expenses 77,158 77,479 76,929 76,855 77,381 70,434 77,453 79,683 77,156 78,302 77,206 77,420 77,372
Operating Income 67,267 57,427 65,990 69,446 62,246 20,424 57,151 75,487 69,398 34,325 83,319 60,665 64,884
Other Income (Expense)Interest expense (9,897) (9,897) (9,897) (9,897) (9,897) (11,147) (11,147) (11,147) (11,147) (11,147) (11,147) (11,147) (11,147) Capital contributions - - - - - 67,178 - - - - - - - Other (775) (401) (10,905) (2,455) (2,440) (2,544) (2,884) (3,042) (3,288) (2,730) (3,273) (3,413) (3,109)
(10,672) (10,298) (20,802) (12,352) (12,337) 53,487 (14,031) (14,189) (14,435) (13,877) (14,420) (14,560) (14,256)
Net Income 56,595$ 47,129$ 45,188$ 57,094$ 49,909$ 73,912$ 43,120$ 61,298$ 54,964$ 20,448$ 68,899$ 46,105$ 50,629$
WAUPUN UTILITIESDetailed Income Statement and YTD Budget Comparison
Water UtilityFor the Period Ended May, 31 2019
Page 6 of 10
26
SEWER May 2017 May 2018 May 2019
Operating Revenues 2,165,729$ 2,319,747$ 2,395,924$ Operating Expenses
WWTP operation expenses 346,514 365,197 360,942 Laboratory expenses 52,240 56,640 70,049 Maintenance expenses 425,705 439,858 398,692 Customer accounts expenses 147,646 142,486 152,417 Administrative & general expenses 389,437 410,857 390,552
Total operating expenses 1,361,542 1,415,038 1,372,652
Other Operating ExpensesDepreciation expense 712,988 679,192 670,313
Total other operating expenses 712,988 679,192 670,313
Operating Income 91,199 225,516 352,959
Other Income (Expense)Interest expense (94,709) (78,789) (62,304) Capital contributions 35,608 349,606 63,390 Other 29,996 30,141 142,480
Total other income (expense) (29,105) 300,959 143,566
Net Income 62,094$ 526,476$ 496,526$
Operating Income (excluding GASB 68 & 75) 120,466 256,636 372,705 Rate of Return 0.83 1.94 2.75
Current Ratio 104.64 184.40 191.01
Months of Unrestricted Cash on Hand 21.53 22.38 23.19
Debt vs Equity 0.82 0.85 0.89
Asset Utilization 0.48 0.47 0.49
Note 1 - Sewer rates were increased January 2019.
DefinitionsRate of Return - Return on investment in capital infrastructure. Current Ratio - measure of liquidity or ability to pay obligations. Should be > 1.Months of Unrestricted Cash on Hand - measure of reserves. Should be at least 2-3 months.Debt vs. Equity - Percent of infrastucture financed by operations. 50% is a good benchmark.Asset Utilization - Illustrates the relative age of the system. Ratio of 1 indicates a system at full life expectancy.
WAUPUN UTILITIESIncome Statement and Financial Ratios
Sewer UtilityFor the 12 Months Ending:
Page 7 of 10
27
Last 12 Months YTD 2019 YTD Budget DifferenceSEWER
Operating Revenues 2,395,924$ 963,762$ 941,713$ 22,050$ Operating Expenses
WWTP operation expenses 360,942 141,395 152,618 (11,223) Laboratory expenses 70,049 32,252 25,809 6,443 Maintenance expenses 398,692 111,720 157,204 (45,484) Customer accounts expenses 152,417 64,052 66,405 (2,353) Administrative & general expenses 390,552 158,538 158,984 (446)
Total operating expenses 1,372,652 507,957 561,020 (53,063) Other Operating Expenses
Depreciation expense 670,313 282,031 282,031 - Total other operating expenses 670,313 282,031 282,031 -
Operating Income 352,959 173,774 98,662 75,113
Other Income (Expense)Interest Expense (62,304) (21,871) (21,870) (0) Capital contributions 63,390 - - - Other 142,480 79,262 16,667 62,595
143,566 57,391 (5,204) 62,595
Net Income 496,526$ 231,166$ 93,458$ 137,708$
May 2019 April 2019 March 2019 Feb 2019 Jan 2019 Dec 2018 Nov 2018 Oct 2018 Sept 2018 Aug 2018 July 2018 June 2018 May 2018SEWER
Operating Revenues 190,316$ 194,363$ 198,544$ 187,540$ 193,000$ 189,816$ 189,849$ 209,172$ 204,337$ 216,110$ 215,884$ 206,994$ 208,826$ Operating Expenses
WWTP operation expenses 24,886 24,079 36,034 28,205 28,191 23,092 35,443 22,703 25,942 40,802 36,127 35,439 35,657 Laboratory expenses 7,206 7,724 6,218 3,583 7,521 4,541 7,998 4,678 5,577 5,584 4,117 5,303 4,075 Maintenance expenses 28,165 19,867 23,558 20,149 19,981 113,299 17,196 24,597 27,961 31,307 26,546 46,066 21,866 Customer accounts expenses 12,809 12,382 12,915 12,087 13,859 9,679 12,293 12,323 11,709 16,170 14,734 11,456 12,253 Administrative & general expense 30,354 24,840 33,074 30,130 40,140 43,750 26,952 27,931 30,129 32,344 40,448 30,461 43,537
Total operating expenses 103,420 88,892 111,799 94,154 109,692 194,360 99,882 92,232 101,318 126,207 121,972 128,724 117,388
Other Operating ExpensesDepreciation expense 56,406 56,406 56,406 56,406 56,406 54,248 55,672 55,672 55,672 55,672 55,672 55,672 55,672
Total other operating expenses 56,406 56,406 56,406 56,406 56,406 54,248 55,672 55,672 55,672 55,672 55,672 55,672 55,672
Operating Income 30,489 49,065 30,339 36,980 26,902 (58,792) 34,294 61,268 47,346 34,231 38,240 22,597 35,766
Other Income (Expense)Interest expense (4,374) (4,374) (4,374) (4,374) (4,374) (5,776) (5,776) (5,776) (5,776) (5,776) (5,776) (5,776) (5,776) Capital contributions - - - - - 63,390 - - - - - - - Other 16,775 9,704 24,439 15,252 13,093 21,702 11,479 5,989 4,897 19,308 1,402 (1,559) 13,795
12,401 5,330 20,065 10,877 8,719 79,316 5,703 213 (879) 13,532 (4,374) (7,335) 8,019
Net Income 42,890$ 54,394$ 50,404$ 47,857$ 35,621$ 20,524$ 39,997$ 61,480$ 46,467$ 47,763$ 33,866$ 15,263$ 43,784$
WAUPUN UTILITIESDetailed Income Statement and YTD Budget Comparison
Sewer UtilityFor the Period Ended May, 31 2019
Page 8 of 10
28
ELECTRIC May 2017 May 2018 May 2019 April 2019 ChangeCash and investments - unrestricted 1,575,637$ 1,811,593$ 1,862,838$ 1,851,503$ 11,336$ Cash and investments - restricted 137,505 138,110 139,263 122,712 16,551 Receivables 782,891 770,564 731,497 723,046 8,450 Materials and Supplies 207,370 203,059 223,037 223,037 - Other assets 484,634 393,717 597,362 606,033 (8,671)Plant - net of accumulated depreciation 8,981,414 9,203,027 9,185,734 9,178,631 7,103
Total Assets 12,169,452 12,520,071 12,739,731 12,704,962 34,769
Accounts payable 701,369 694,392 575,258 568,013 7,245 Payable to sewer utility 264,547 176,365 114,365 114,365 - Interest accrued 9,309 8,324 7,318 4,694 2,624 Accrued benefits 279,767 304,183 88,249 88,249 - Deferred Credits 203,982 171,187 712,554 709,655 2,899
Long-term debt 1,593,410 1,432,760 1,268,540 1,268,540 - Net Position 9,117,069 9,732,859 9,973,448 9,951,447 22,001
Total Liabilities & Net Position 12,169,452$ 12,520,071$ 12,739,731$ 12,704,962$ 34,769$
WATER May 2017 May 2018 May 2019 April 2019 ChangeCash and investments - unrestricted / designated 607,321$ 961,538$ 1,139,343$ 934,981$ 204,363$ Cash and investments - restricted 338,833 301,403 630,796 960,280 (329,484) Receivables 175,399 180,513 188,430 182,046 6,384 Materials and Supplies 58,341 70,762 58,251 63,300 (5,049) Other assets 574,488 474,106 502,159 515,897 (13,738) Plant - net of accumulated depreciation 15,468,885 15,437,770 15,719,927 15,515,072 204,855
Total Assets 17,223,268 17,426,093 18,238,906 18,171,575 67,331
Accounts payable 19,987 13,052 13,792 12,953 839 Interest accrued 35,102 31,396 27,600 17,703 9,897 Accrued benefits 142,975 151,447 46,840 46,840 - Deferred Credits 105,797 87,854 353,723 353,723 - Long-term debt 6,009,464 5,403,652 5,484,188 5,484,188 - Net Position 10,909,942 11,738,691 12,312,763 12,256,168 56,595
Total Liabilities & Net Position 17,223,268$ 17,426,093$ 18,238,906$ 18,171,575$ 67,331$
SEWER May 2017 May 2018 May 2019 April 2019 ChangeCash and investments - unrestricted 2,442,442$ 2,638,884$ 2,653,085$ 2,755,790$ (102,705)$ Cash and investments - restricted 2,038,664 2,035,924 1,935,399 2,276,803 (341,403) Receivables 179,355 202,348 185,224 189,024 (3,800) Receivable from electric utility 262,203 176,365 114,365 114,365 - Materials and Supplies 11,241 9,489 9,053 9,112 (59) Advances to other funds 428,440 428,440 428,440 428,440 - Other assets 285,337 225,267 338,214 344,384 (6,170) Plant - net of accumulated depreciation 13,646,768 13,614,317 13,829,985 13,710,709 119,276
Total Assets 19,294,451 19,331,034 19,493,766 19,828,626 (334,860)
Accounts payable 19,524 12,053 13,762 11,953 1,810 Interest accrued 5,530 3,356 1,097 26,015 (24,918) Accrued benefits 136,624 148,478 61,691 61,691 - Deferred Credits 139,395 116,026 459,328 459,328 - Long-term debt 2,490,705 2,019,629 1,532,153 1,886,794 (354,641) Net Position 16,502,674 17,031,493 17,425,735 17,382,845 42,890
Total Liabilities & Net Position 19,294,451$ 19,331,034$ 19,493,766$ 19,828,626$ (334,860)$
WAUPUN UTILITESBalance Sheets
Electric, Water, and Sewer
Page 9 of 10
29
Monthly Dashboard - Cash & Investments May 2019
Account Restrictions May 2019 April 2019 $ Inc/(Dec) % Inc/(Dec)
Checking ‐ E Unrestricted 285,551$ 279,901$ 5,650$ 2.02%
Checking ‐ W Unrestricted 118,916 159,663 (40,747) ‐25.52%
Checking ‐ S Unrestricted 246,681 322,917 (76,236) ‐23.61%
Reserves ‐ E Unrestricted 1,577,287 1,571,602 5,686 0.36%
Reserves ‐ W Unrestricted 611,932 367,691 244,241 66.43%
Reserves ‐ S Unrestricted 2,406,404 2,432,873 (26,469) ‐1.09%
P&I Redemption ‐ E Restricted 49,655 33,104 16,551 50.00%
P&I Redemption ‐ W Restricted 214,590 143,046 71,544 50.01%
P&I Redemption ‐ S Restricted 34,514 384,694 (350,180) ‐91.03%
Construction ‐ W Restricted 301,046 702,074 (401,028) ‐57.12%
Depreciation ‐ E Restricted 89,608 89,608 ‐ 0.00%
Depreciation ‐ W Restricted 115,160 115,160 ‐ 0.00%
ERF ‐ Water Plant Designated 408,495 407,626 869 0.21%ERF ‐ WWTP Restricted 1,900,885 1,892,109 8,776 0.46%
8,360,725$ 8,902,067$ (541,342)$ ‐6.08%
Unrestricted and Designated 5,655,267$ 5,542,273$ 112,994$ 2.04%Restricted 2,705,458$ 3,359,794$ (654,336)$ ‐19.48%
$‐ $200,000 $400,000 $600,000 $800,000
$1,000,000 $1,200,000 $1,400,000
Cash <12 mos. 13‐24 mos. 25‐36 mos. 37‐48 mos. 49‐60 mos. >60 mos.
Long‐Term Investment by Maturity
0%
34%
14%21%
26%
5%
Long‐Term Investments by Type
Cash/Money Markets
Certificate of Deposits
US Government
Government Agencies
Corporate Bonds
Asset Backed Security & Other
Page 10 of 10
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
